Icelandair increases 737 Max order

Icelandair has increased its commitment to the Boeing 737 Max by firming an order for 16 aircraft, up from its initial indication that it would take a dozen.

The airline has effectively converted four of the 12 purchase rights it had negotiated as part of a tentative agreement signed last December, adding three more 737-9s and another 737-8.

Under the revised agreement Icelandair will take nine 737-8s and seven 737-9s. The company says it still has eight purchase rights along with the firm orders,

"The agreements have now been finalised," the carrier states, adding that the aircraft will be delivered in 2018-21. All members of the 737 Max family will be powered by CFM International Leap-1B engines.

Icelandair Group says the purchase price is confidential but puts the list price for the 16 firm jets at $1.6 billion. It will configure its 737-8s with 153 seats and its -9s with 172.